Oracle slips as Bloom departs

SHARES in Oracle plunged 17pc yesterday as news that another senior executive is quitting sparked worries about an exodus of talent from the world's second largest software company.

Executive vice president Gary Bloom, who is leaving to become chief executive of Veritas Software, is the second senior Oracle executive to resign this year, following the departure of chief operating officer Ray Lane in July. The news sent the shares down $5 to $23.75, as analysts worried about other potential departures.

Until recently Oracle was one of this year's stars, with its shares rising from $20 to $46 in September, making the company's flamboyant chief executive Larry Ellison the world's second richest man, behind Microsoft's Bill Gates. However, the shares have tumbled by 48pc since then, reflecting growing worries about sales growth at Oracle, whose technology drives the web sites of internet companies such as eBay and Yahoo.

Mr Bloom, 40, has been at Oracle for 14 years and was one of three executives to assume the duties of Mr Lane, who left after a dispute with Mr Ellison. He ran the company's marketing, support and education divisions but said he resigned because it is clear that Mr Ellison has no plans to step down as chief executive.

He said: "That was a limiting factor in how much further I thought I could go. Oracle is clearly under Larry's leadership." Analysts said Mr Bloom's departure was a worrying sign following Mr Lane's exit.